Pramerica Life Group
Credit Shield

Master policyholder may choose one or both of the moratorium options where the sum assured during the moratorium period may be:

a. Uniform (Applicable wherein interest is payable during the moratorium period)

The initial Sum Assured shall remain unchanged up to the end of moratorium period, and thereafter it shall decrease as per the benefit schedule.

b. Increasing (Applicable wherein interest is not payable during the moratorium period)

The initial Sum Assured shall increase to the extent of the outstanding interest during the moratorium period, and thereafter it shall decrease as per the benefit schedule.

The moratorium option will be subject to the following conditions:

This feature is allowed only with the Reducing Cover option.

• For loans with a moratorium period, the Policy Term will also include the moratorium period.

• Minimum moratorium period allowed is 3 months and the maximum is 7 years, during which disbursement could be staggered. The moratorium period will be available in multiple of 1 month.  

If there is more than one borrower for the same loan, the cover can be offered on a ‘First Death Basis’ or ‘Loan Share Percentage Basis’. Individual borrowers or investors/co-borrowers/coinvestors of the institution can be covered for a single loan, provided there must be an insurable interest between them.

a. First Death Basis:

Maximum 2 members can be covered under this option

Each co-borrower shall be insured for 100% of the Sum Assured. On occurrence of the insured event for any one of the borrowers, the applicable benefits as per the benefit schedule will be paid and the coverage for the surviving coborrower shall cease thereafter.

In the event of simultaneous occurrence of the insured event of more than one member, applicable benefit amount shall be payable only once in respect to the first Insured Member as stated on the Certificate of Insurance (COI).

In case the claim of any of the borrowers under First Death Basis, is repudiated (including death due to suicide within one year of Coverage Commencement Date), the coverage of the surviving borrowers shall continue as per the Policy terms and conditions.

The premium for the individual members will depend on their individual ages and genders. However, a discount of 15% would be given on the premium chargeable for the younger life. 

 b. Loan Share Percentage Basis:

Maximum of 5 members can be covered under this option

Each co-borrower shall be insured up to his/her share of the Sum Assured in the proportion of their respective loan share percentages. On occurrence of the insured event for any one of the borrower, the company will pay the percentage of the applicable benefits as per the benefit schedule. The cover shall cease only for that member and the cover for the other surviving co-borrowers shall continue to the extent of their respective shares.

In case of diagnosis of Terminal Illness, the lump sum benefit equal to 6 Equated Monthly Installments (EMI) as per the benefit schedule will be payable to insured member for the respective share in proportion of the loan taken.

There is a set-back of 3 years for female lives on the male rates. The following rule would be applicable.

• Education loans: For females aged 14, 15 and 16, the rate for age 14 will be applicable.

• Other loans: For females aged 18, 19 and 20, the rate for age 18 will be applicable.

Males rates will be applicable in case of third gender.

For risk cover on “First Death Basis”, the premium for the individual Members will depend on their individual ages and genders. A discount of 15% would be given on the premium chargeable for the younger Member.

Surrender by Master Policy Holder

The Master Policyholder can terminate the Master Policy at any time by providing 90 days’ prior written notice to the company. Existing Insured Members will have the following options:

a. Continue their insurance coverage as per the benefit schedule. Company will continue to service such members till their coverage is terminated.

b. Terminate the insurance coverage and take the surrender value.

Surrender by Insured Member  

The scheme shall acquire surrender value immediately. On foreclosure or full prepayment of the loan, the member may request for surrender of his cover anytime during the coverage term.

The surrender value would be computed as per the following formula:

60% of Single Premium * (Unexpired coverage term (in completed months) / Total coverage term (in completed months)) * (Coverage In-force / Initial Coverage Amount)

Where, Single Premium is excluding underwriting extra, rider premiums and taxes, if any and Coverage In-force means original sum assured chosen at inception (in case of level cover) or the benefit amount as per the Benefit Schedule (in case of reducing cover) as on the monthly plan anniversary immediately before the date of surrender of the policy.

Tax benefits may be available as per prevailing tax laws. Tax laws are subject to change. Please consult the tax advisor for details.